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  • Home
  • Your Taxes
    • When to Call us
    • Stock Option HELP!
  • Your Business
  • Our Firm
  • Contact Us
  • Blog
  • Portal
  • TTS ASSOCIATES
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Stock Options

Options are a major component of compensation in the Silicon Valley. However, companies don't do a lot to explain how the options work. I can help you get comfortable with your options, and develop a strategy to maximize their value.

Incentive Stock Options



Non-qualified Stock Options


​Restricted Stock Units

•Incentive Stock Option (ISO)– Most tax advantaged option, but also the most complicated. You will likely pay Alternative Minimum Tax (AMT) on exercise, but you can get a credit for this if you hold long-term. Also – there’s no withholding. In the end, you can qualify for long term treatment on the exercise AND sale.

•Nonqualified Stock Option (NSO) – When you exercise, you purchase it cheaply, and the discount is treated like compensation income. Tax is withheld at 25% federal, and state withholding. Note – this may not be the actual tax due. You can then decide whether to hold the stock for long term treatment or not from the point of exercise.
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•Restricted Stock Units (RSU) – Similar to NSO, but the stock vests, there is no need to purchase it at exercise


​FREE REPORT!

stock_options_dec2015.pptx
File Size: 739 kb
File Type: pptx
Download File


​See the attached presentation discussing stock option concepts. I'd be happy to discuss these in greater detail with you - just send me an email.
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